Chapter 3 Flashcards
What was the extend of french debt by Louis XIV’s death?
How was this increasing?
What could french debt be described as?
2 billion livres
Annual interest payments
Balance of payments crisis
What wars was France involved in?
What did this add to?
Wars of the Austrian succession (1740-8)
7 years war (1756-63)
American war of independence
Debt
What did France loose in the 7 years war settlement?
Colonies in North America
Why can France’s involvement in the American war of independence be considered negative?
Little gain
Treaty of Paris 1783
Expensive: debt = 3.3 billion by 1783
Louis XVI entered during financial crisis
Why was France’s financial position weak at the ascension of Louis XVI?
Louis XV spendthrift & failed to produce effective financial reform
Why did the gov have to rely on loans?
What was negative about this?
When we’re loans most necessary?
Inefficiency of direct & indirect taxes
Interest to be payed
During war
What were direct & indirect taxes?
What were alternates to these?
When were alternates used?
What finances the gov
Loans
To meet the short falls
What taxes did Louis XIV & XV introduce for war?
For everyone:
Capitation
Vingtieme
What was the capitation tax?
Direct poll tax
For everyone but clergy payed don gratuit instead & 2nd estate payments varied on tax class (22)
What was the vingtieme tax?
Direct tax
5% of earnings from land, property, commerce, industry & offices
Clergy win exemption
Pays d’etats won reduced rates
What we’re the 1st & 2nd estate privileges?
What is an example of this?
Reduced taxable income
Church annual don gratuit not representative of lands wealth as self calculated
What was the main direct tax?
Taille personnelle
An estimated annual value of possessions
Who collected indirect taxes?
What were indirect taxes on?
What was wrong with the indirect tax system?
Tax farmers
Goods & services
Accounting corruption
No central treasury
Financial officials purchased positions & kept some of what they collected (at no estimate of what should be there bc of disorganisation)
How was France’s economy thriving?
Rapid population growth (late 1780s = 27 mill)
Politically stable, United
Landowners prosperity
Improved agricultural techniques from 1730s (crop rotation, fertilisers)
Trade with colonies X4
What we’re the problems of France’s economy?
Economy mainly agricultural: Farming lands % between sons reduced self-sufficiency
Food shortage as population increased
Internal trade barriers
Units and measures not standardised: ample opp for fraud
Industry less mechanised than Britain
When was the vintage failure?
Shawn were the harvest failures & bad winters?
What did this cause?
1778
1785-9
Trade slump caused lay offs during time of high bred prices
What we’re some of the indirect taxes?
Gabelle (salt)
Tabac (tabacco)
Aides (consumption tax on consumer goods)
Domaine (crown lands)
Triate (customs duty)
Timbre (stamp)
When was Turgot the finance minister (controller general)?
Why was he needed?
1774-6
Louis needed to reform royal finances to maintain and effective absolute monarchy
Known for his reforming ideas
How did Turgot attempt to get an efficient economy?
Through a freer system
Replacing crown revenue, privileges & customs duties
What did Turgot achieve?
Overall, reduced deficit
Cut royal expenses
Gov departments expenses analysed to find ways to reduce expenditure
Removal/reduction of some pensions
Increased efficiency of farming system through tax reforms
Which financial minister opposed involvement in the American war?
Why?
Turgot
Costly
What we’re the main reform failures of Turgot?
Attempt to replace many indirect taxes with. Property tax opposed by 2nd estate
1774- abandoned attempt to establish free grain trade
Six Edicts, 1776
What we’re the 6 Edicts?
Abolish privileges & tax all
Man to work without restriction.
What edicts of the 6 edicts were opposed?
5: suppressed guilds
6: abolished corvée
